As the pandemic brought the world economies to a halt/slowdown, different industries are leading their way through the crisis and changing the core strategy. Disha Chhabra shares top 5 lessons from senior leaders across industries
In the last one year, our lifestyles and habits have changed forever. The way we live, eat, play, work is all altered. The resulting lockdowns of countries has brought national economies to a standstill. Salary and job cuts are happening throughout the world. Lives versus livelihood is a constant debate. No one living in these times has experienced a crisis that can be remotely equated to this one. And things are still unfolding.
When we are not going out to eat out but cooking more at home; when we prefer services at home rather than going out; when we need high speed internet to work from home, when masks are the new fashion statement; all these changes in our behaviour shape the way different industries are leading their way through the crisis and changing the core strategy. Covid-19 has impacted every sphere of the corporate world.
The pandemic has had a varied impact on different industries. Across the globe, there have been industries where revenue has gone negative; for some it has even gone down to zero. Industries like travel which relied on people physically moving around even needed to refund future bookings. Entertainment like physical events, movie ticketing, are in the same category. It is not sure when revenue is going to return. Some of these industries fall in the bucket of ‘putting off for the future’. For example, people are putting off the visit to the hairdresser and are likely to go back when the crisis eases. These industries are shifting their present revenues into the future. The immediate focus is on cash conservation.
During this crisis, we have all indulged in some kind of hoarding. Be it toilet paper in the western countries or Maggi noodles in India; industries selling products which are essentials and non-perishable are seeing their future revenues brought forward as people buy for the next quarter and at some point in future, the present day spends will impact the future spends.
On the other end, being stuck and home and having a lot of time at hand; people are finding time to take up new hobbies; cooking, gardening and other isolation friendly activities. Baking banana breads became a huge trend. Companies that help provide these virtual classes or sell the raw materials one needs for these activities are attracting a large share of discretionary spends of customers. This is new revenue for the companies but not necessarily brought forward from the future. However, the growth that these industries are seeing may not sustain once people begin to step out for leisure and entertainment.
And then there are big winners in this crisis. Industries like video conferencing, online grocery delivery, digital payments have seen a huge spike in adoption and have reached levels they would have otherwise expected to reach in order of months to years. These are likely fundamental customer behaviour changes and expected to stay even when the crisis eases. These industries are not only making a lot of revenue during the crisis. And when the crisis is over, the new normal of these industries will be at a higher level. These are industries that are mostly constrained on their supply side to handle the exponential growth in demand.
Few years down the line, leadership and business lessons from this crisis will be taught as crisis management case studies in B-schools. Which of these lessons will be permanent armours for future leaders for dealing with any crisis? And do the learnings differ depending on which side of the revenue curve a company finds itself. Does leadership need to be reactive? Here are the top 5 lessons coming directly from senior leaders across different industries and organisations.
Lesson 1: Nimbleness
Ever since the world reported its first case, every day has been a roller coaster ride. Situations on the ground have evolved rapidly. Every day has been different from the previous one.
A week before, leaders were checking the sales numbers and reviewing their 2020 plans. A week later, supply chains were disrupted and businesses asked to temporarily shut until further notice. A day before, all our employees were safe. A day later, an entire department got infected. The time horizon of major events was severely shortened.
In a crisis situation, dealing with uncertainty needs less planning, more execution. This is not the time to draw a product roadmap, a 5-year vision or long-term strategies. Leaders are embracing speed, mitigating the short to mid-term consequences to stabilize the situation and stay afloat. COVID-19 has delivered a crash course in agility for organisations of all stripes.
Lesson 2 - Innovation
It is said that innovation and creativity love crises and constraints. Crisis brings out constraints and makes innovation almost a forcing function. Leaders often leverage consultants to get a fresh, outside perspective on their organisations to find opportunities to innovate. A crisis can have much the same effect, putting the spotlight on vulnerabilities, problem areas; great and small, that we’ve been ignoring or are just plain unaware of. When a crisis hits, we are forced to confront the truth about how our systems work (or don’t). The places where things could be done better or more efficiently become glaringly obvious. All of a sudden, opportunities for innovation are staring us in the face.
The current crisis is bringing a whole new set of innovations. Services like medicine, education, industrial plant set ups are all going digital. Google and Apple are collaborating on contact tracing. Dunzo is working with brands to get the products delivered at one’s doorstep. ITC’s personal care team deserves recognition for introducing a range of new health and hygiene products for households. Its hospitality team curated a gourmet menu, which recreates the ITC dining experience for our customers in the comfort of their homes. While these are just a couple of examples, leaders across industries continue to strive to change and innovate to ensure that they deliver nothing short of excellence in their products and services to our customers, despite the pandemic.
Lesson 3: Employee well being
While it may sound obvious, crises are crises because people suffer. In a situation where emotions and anxieties run high, leaders connect with employees and other stakeholders and acknowledge the personal and professional challenges they are going through. Impactful leaders convey their vision in a manner that the employees feel aligned, motivated and rallied against.
Effective crisis management requires integrity, accountability, and moral courage. Thoughtful, frequent, and empathetic communication signals that the leaders share with their organization show they care and are together in the journey that employees go through. These messages are delivered with “bounded optimism” — hope combined with realism.
Lesson 4: Rising above self interest
What makes a leader is not just thinking about self but for the larger community. Be it giving back to the community in cash or kind or even gestures where one takes care of people who are not directly on the organization’s payroll but on the frontline; leaders showcase how it is not enough if the organization alone progresses. No true leader sees crisis as a time to carve out a competitive advantage; definitely not at the cost of a struggling competitor. Compassion is leadership, leadership is compassion — compassion not just for self but for everyone else, especially ones where one has no self-interest whatsoever. If anything, the crisis will make leadership more humane and above self-interest.
Lesson 5: Being open to failing
In times of crisis, the acceptance of failure and moving on from there to the next step and the next is a critical leadership trait. These are times when given the dynamicity of the situation, decisions need to be made based on the limited information available and many times in decentralized manners. Fail fast is more important than learning and waiting to make the right decision. Different business models are prototyped and many of them may not work. It’s ok. Leaders move on.
There are often external circumstances beyond one’s control. Leaders are kind to yourself and to their teams. They repivot as many times as necessary. They collaborate with competitors. Leadership is not about the outcome — it is about the process. Even a decision of shutting down the business may look like a failure looking outwards. But the process of arriving at that decision, accepting, communicating and executing the failure can demonstrate leadership. Being open to failure is the biggest lesson from turbulent times.
The onus of leadership lies with each one of us. We all need to lead ourselves, our loved ones, our societies, organisations and countries out of this and every crisis.
The writer is a corporate professional and author of 4 books. Her latest book, Inflection Point – Leadership Lessons from Turbulent Times, has been published by Rupa Publications